ADJUDGED BANKRUPT.

Waimate Daily Advertiser, Volume XXIV, 24 December 1926, Page 5

ADJUDGED BANKRUPT.

G. S. MEREDITH AND COMPANY. CREDITORS’ PETITION SUCCESSFUL. A sitting of the Supreme Court in bankruptcy was held at the Timaru Courthouse yesterday, before the Registrar, Mr A. E. Reynolds, when Messrs Pyne, Gould, Guinness Ltd., petitioned to have George Sunderland Meredith and Samuel James Hitchins, trading as Meredith and Co., adjudged bankrupt. Mr F. W. Ongley appeared ln support of the petition, and Mr J. Emslie represented Meredith and Co. The Registrar said that he noticed that in the motion for opposition, Meredith and Co. denied the act of bankruptcy. Mr Emslie said that he intended to deny the act of bankruptcy, but admitted that as the result of a meeting of creditors, a deed of assignment was signed. The Registrar said that the question that perturbed him was whether or not he should confine Mr Emslie to> his petition of opposition. Mr Ongley said that all the facts were admitted. His case was that the trustees would say that the deed of assignment was worthless. He had letters from several creditors and they all stated that they were forced to sign the deed as the result of false representation by Meredith and they now wished to go' back on that. R. F. Algie. accountant, of Wai mate; stated that he was a trustee under the deed of assignment. On November 29th he was at a meet in"- of the creditors and at that meeting Meredith made certain statements, but it transpired that these were not correct. He prepared a statement from information given by Meredith and Co., and that showed that there would be a small surplus. He would not like to say that all the claims had come in yet, and he was given to understand that the day before yesterday a summons was out for Meredith. Of this he previously had no _ knowledge. At the second meeting a statement was to hand from Messrs Glover and Co., showing that Mere-/ dith owed them £2OO, but this was disputed. The lease of the coal njines was estimated to' run I'or 17 years yet, and Witness valued the term of the lease on this basis at £3OOO. They had now had an opinion from- Messrs Hamilton' and Fitch that the release expired in 1930. and that after that Meredith ami Co., would have no further interest in it. Mr Emslie said the owner of the mine had sold the mineral rights, and the Land Board was willing to grant an extension to Meredith and Co. for a further 14 years. Mr Algie said that this was another asset that had now disappeared. He had not been able to, get any further information from Mere dith who would not supply any statement at all. He had alsio asked for the Post Office key, but Meredith refused to hand this over. Mr Emslie: That is his private property. Continuing, witness said that on the day of the auction sale he was given information that certain things to be put up for auction were missing, and he was given to understand that they were in the strong room. He asked Meredith to open this, but he would not do so. Shares held by the Union Bank had been claimed by Meredith, he having deposited money on December 13 to lift the certificates. Since then the shares had been transferred to' Mrs Meredith. They could not get any further forward, because Meredith would give no, statement. They had no means of forcing anything, and his books, so far as records were concerned, were not worth the paper they were written on. Witness said that in their position as private trustees they were not prepared to carry on.

To Mr Emslie : He was appointed a trustee during his absence, and his powers expired on November 29. Mr Glover was the man who seconded the resolution about the assignment. His complaint was against Meredith’s pergonal attitude throughout, for he objected to the trustees having anything to do with his private estate until after they had settled up the affairs of Meredith and Clo. Their first move was to send out accounts, and 90 per cent of these had been returned dis puted. To the Registrar: The entries in the books were incomplete and in many cases inaccurate. He had one instance in mind and that was where an account of £B5 was posted as £25. The books did not disclose the position at all, His opinion, as an account ant, was that Meredith should not he allowed to

start in business again under the same system of bookkeeping. The system was perhaps alright, but it was the way the system was carried out. Jeffrey A. Lash, another of the trustees, said that they had not the power to got any further. He was of opinion that the mattor should be taken up by somoono with mor? power. Mr Emslie said that the first meeting of creditors resolved temporarily to leave the matter in the hands of three trustees. On November 29 another meeting was called, and a secret ballot which was held resulted in the assignment being agreed on by 34 votes to 20. There were 63 creditors representing a

total of £2349. The question now was whether the estate should be administered or handed over io the official Assignee. The Registrar asked what the position would be if he dismissed the petition. Was there prevision for the appointment of fresh trus tees? ir Emslie considered that there was. George Sunderland Meredith, one of the debtors, admitted that Pyne, Gould, .Guinness Ltd., had ajudgment against his firm. During the fortnight after the first meeting of creditors the trustees advertised, for claims against the estate, and at the final meeting a statement of affairs was presented. At this meeting 45 creditors were present, and a motion for assignment against bankruptcy was carried. The trustees later took possession of all of his property, but Mr Algie knew all about his personal property, which was secured to H. H. Meredith. The interim trustees were ap pointed to deal only with the firm’s affairs. Referring to the coal mine lease, debtor said that he had seen the Commissioner of Crown Lands, and had leased 25 years frorii 1917 and for such further term as the Minister might see fit to grant. Thecreditors were of opinion that this was one of the best rssets in the estate. At the present time the lease was under a mortgage of £5OO to the bank. He had not refused to give Mr Algie any information, nor had he collected any money. At first he refused to give up the key of the strong room, because he wanted his private papers. When he got those he handed over the keys. To Mr Ongley: He was instructed by the bank to pay certain sums in, so'he sold some shares. The bank had demanded a reduction, of his account. He sold the shares to his wife for £5O, and they were then transferred to her. He had a few other pounds in hand, but the trustees had no- account of this. He had assisted a- young lady to do buying of fruit, but he had no monetary interest in her business. The only benefit to do creditors by the assign ment would be in looking after the coal mine, and in the sale of the property. To the Registrar: He contended that Mr Algie’s evidence was touched with personal animus. The only thing Algie would have to gain was that if the firm was made bankrupt, that he would be able to act for the Assignee in Waimate. The Registrar :■ That is too remote. This concluded the debtor’s case. The Registrar said he did not think the debtor had made out a sufficiently good case to show that the order should niot be made, and it must succeed.

Costs amounting to £l2 12s Od and witnesses expenses were allowed.